Prosperity Bancshares and Stellar Bancorp, both Texas-based lenders, have obtained the regulatory clearances for their merger.
The transaction, first announced in January, would see Prosperity buying Stellar Bancorp and its subsidiary Stellar Bank in a deal worth about $2bn.
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Under the agreed terms, Stellar shareholders are set to receive 0.3803 Prosperity common shares and $11.36 in cash for each share they hold.
The Federal Reserve Bank of Dallas granted a waiver of prior approval for the holding company merger.
The Federal Deposit Insurance Corporation and the Texas Department of Banking also approved the planned merger of Stellar Bank into Prosperity Bank once the holding company combination is completed.
The companies expect to close the deal on or around 1 July 2026.
Completion remains subject to Stellar shareholder approval and the fulfilment or waiver of other standard closing conditions contained in the merger agreement.
Stellar Bancorp is a Houston, Texas-based bank holding company. Its main subsidiary, Stellar Bank, offers commercial banking services mainly to small and medium-sized businesses as well as individual customers in Houston, Dallas, Beaumont and nearby Texas communities.
Prosperity Bancshares, also based in Houston, Texas, is a regional financial holding company with $38.46bn in assets. It provides banking services and investment products to consumers and businesses across Texas and Oklahoma and operates 312 full-service branches.
